IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i3p1118-d1328397.html
   My bibliography  Save this article

Optimizing Electric Vehicle Integration with Vehicle-to-Grid Technology: The Influence of Price Difference and Battery Costs on Adoption, Profits, and Green Energy Utilization

Author

Listed:
  • Jiashun Li

    (School of Economics and Management, Chongqing Jiaotong University, Chongqing 400074, China)

  • Aixing Li

    (School of Information Science and Engineering, Chongqing Jiaotong University, Chongqing 400074, China)

Abstract

Over the past decade, the widespread adoption of global green energy has emerged as a predominant trend. However, renewable energy sources, such as wind and solar power, face significant wastage due to challenges in energy storage. Electric vehicles (EVs) are considered an effective solution to address the energy storage dilemma. “Vehicle-to-grid” (V2G) technology, allowing vehicles to feed electricity into the grid, enhances the efficiency of renewable energy utilization. This paper proposes an electric vehicle game model that comprehensively considers user choices, corporate profits, and green energy utilization. The model, based on difference in prices, electricity rates, and fuel prices, establishes user utility models to determine optimal driving distances and driving decisions. It separately formulates the maximum profit functions for selling conventional electric cars and V2G electric cars, deriving optimal pricing for enterprises and user adoption rates. The research findings indicate that when price difference can offset V2G battery costs, increasing price difference and reducing battery costs effectively enhance electric vehicle adoption rates, increase corporate profits, and improve green energy utilization. Moreover, compared to conventional electric vehicles, V2G electric vehicles demonstrate a comparative advantage, with the implementation of V2G expanding corporate profits and green energy utilization. Validation using Chinese data reveals that when price difference can offset V2G battery costs, drivers are more inclined to choose V2G electric vehicles. Both battery electric vehicles (BEVs) and V2G electric vehicles exhibit adoption rates that can increase by over 35%. This study provides theoretical and model support for the future development of V2G and policy formulation, underscoring the comparative advantages of V2G in enhancing green energy utilization efficiency. Additionally, this study offers valuable insights as a reference for business models in the V2G electric vehicle industry.

Suggested Citation

  • Jiashun Li & Aixing Li, 2024. "Optimizing Electric Vehicle Integration with Vehicle-to-Grid Technology: The Influence of Price Difference and Battery Costs on Adoption, Profits, and Green Energy Utilization," Sustainability, MDPI, vol. 16(3), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1118-:d:1328397
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/3/1118/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/3/1118/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xu, Jie & Huang, Yuping, 2022. "The short-term optimal resource allocation approach for electric vehicles and V2G service stations," Applied Energy, Elsevier, vol. 319(C).
    2. Hidrue, Michael K. & Parsons, George R. & Kempton, Willett & Gardner, Meryl P., 2011. "Willingness to pay for electric vehicles and their attributes," Resource and Energy Economics, Elsevier, vol. 33(3), pages 686-705, September.
    3. Yuxin Wen & Peixiao Fan & Jia Hu & Song Ke & Fuzhang Wu & Xu Zhu, 2022. "An Optimal Scheduling Strategy of a Microgrid with V2G Based on Deep Q-Learning," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    4. Jiayi Joey Yu & Christopher S. Tang & Musen Kingsley Li & Zuo‐Jun Max Shen, 2022. "Coordinating Installation of Electric Vehicle Charging Stations between Governments and Automakers," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 681-696, February.
    5. Lingling Shi & Suresh P. Sethi & Metin Çakanyıldırım, 2022. "Promoting electric vehicles: Reducing charging inconvenience and price via station and consumer subsidies," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4333-4350, December.
    6. Mohammad Hossein Sarparandeh & Mehdi Ehsan, 2017. "Pricing of Vehicle-to-Grid Services in a Microgrid by Nash Bargaining Theory," Mathematical Problems in Engineering, Hindawi, vol. 2017, pages 1-11, January.
    7. Tholkappiyan Ramachandran & Abdel-Hamid I. Mourad & Fathalla Hamed, 2022. "A Review on Solar Energy Utilization and Projects: Development in and around the UAE," Energies, MDPI, vol. 15(10), pages 1-27, May.
    8. Wen, Le & Sheng, Mingyue Selena & Sharp, Basil & Meng, Tongyu & Du, Bo & Yi, Ming & Suomalainen, Kiti & Gkritza, Konstantina, 2023. "Exploration of the nexus between solar potential and electric vehicle uptake: A case study of Auckland, New Zealand," Energy Policy, Elsevier, vol. 173(C).
    9. Buket Avci & Karan Girotra & Serguei Netessine, 2015. "Electric Vehicles with a Battery Switching Station: Adoption and Environmental Impact," Management Science, INFORMS, vol. 61(4), pages 772-794, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joanna Alicja Dyczkowska & Norbert Chamier-Gliszczynski & Waldemar Woźniak & Roman Stryjski, 2024. "Management of the Fuel Supply Chain and Energy Security in Poland," Energies, MDPI, vol. 17(22), pages 1-20, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lingling Shi & Suresh P. Sethi & Metin Çakanyıldırım, 2022. "Promoting electric vehicles: Reducing charging inconvenience and price via station and consumer subsidies," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4333-4350, December.
    2. Tang, Juan & Ji, Guan-Qun & Liu, Zhi & Sheu, Jiuh-Biing, 2024. "Electric vehicle battery-charging service and operations managing under different charging station construction modes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 181(C).
    3. Chen, Feng & Xu, Su Xiu & Ning, Yu & Ji, Xiang & Ren, Yaping, 2024. "Compatible electric vehicle charging service: Blessing or curse?," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    4. Gong, Ke & Zheng, Wei & Shu, Yingting, 2024. "Battery leasing business for hydrogen fuel cell vehicles: Motorists' costs, adoption, and manufacturers’ profits," Energy, Elsevier, vol. 293(C).
    5. Nur Sunar & Jayashankar M. Swaminathan, 2022. "Socially relevant and inclusive operations management," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4379-4392, December.
    6. Huang, Youlin & Qian, Lixian, 2021. "Consumer adoption of electric vehicles in alternative business models," Energy Policy, Elsevier, vol. 155(C).
    7. Berliner, Rosaria, 2018. "Drivers of Change in a World of Mobility Disruption: An Overview of Long Distance Travel, Shared Mobility, and Automated Vehicles," Institute of Transportation Studies, Working Paper Series qt6r64v86z, Institute of Transportation Studies, UC Davis.
    8. Ito, Nobuyuki & Takeuchi, Kenji & Managi, Shunsuke, 2019. "Do battery-switching systems accelerate the adoption of electric vehicles? A stated preference study," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 85-92.
    9. Larson, Paul D. & Viáfara, Jairo & Parsons, Robert V. & Elias, Arne, 2014. "Consumer attitudes about electric cars: Pricing analysis and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 299-314.
    10. Tao, Miaomiao, 2024. "Dynamics between electric vehicle uptake and green development: Understanding the role of local government competition," Transport Policy, Elsevier, vol. 146(C), pages 227-240.
    11. Xingping Zhang & Rao Rao & Jian Xie & Yanni Liang, 2014. "The Current Dilemma and Future Path of China’s Electric Vehicles," Sustainability, MDPI, vol. 6(3), pages 1-27, March.
    12. Ahmed Kouider Aissa & Alessandro Tampieri, 2024. "Green Consumers and the Transition to Sustainable Production," Working Papers - Economics wp2024_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    13. Ramos-Real, Francisco J. & Ramírez-Díaz, Alfredo & Marrero, Gustavo A. & Perez, Yannick, 2018. "Willingness to pay for electric vehicles in island regions: The case of Tenerife (Canary Islands)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 140-149.
    14. Alexandros Dimitropoulos, 2014. "The Influence of Environmental Concerns on Drivers’ Preferences for Electric Cars," Tinbergen Institute Discussion Papers 14-128/VIII, Tinbergen Institute.
    15. Tuğba Yeğin & Muhammad Ikram, 2022. "Analysis of Consumers’ Electric Vehicle Purchase Intentions: An Expansion of the Theory of Planned Behavior," Sustainability, MDPI, vol. 14(19), pages 1-27, September.
    16. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    17. Ambec, Stefan & De Donder, Philippe, 2022. "Environmental policy with green consumerism," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    18. Petschnig, Martin & Heidenreich, Sven & Spieth, Patrick, 2014. "Innovative alternatives take action – Investigating determinants of alternative fuel vehicle adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 68-83.
    19. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    20. Felix Hinnüber & Marek Szarucki & Katarzyna Szopik-Depczyńska, 2019. "The Effects of a First-Time Experience on the Evaluation of Battery Electric Vehicles by Potential Consumers," Sustainability, MDPI, vol. 11(24), pages 1-25, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1118-:d:1328397. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.